Kaye Company Acquired 100% of Fiore Company on January 1

question 114

Multiple Choice

Kaye Company acquired 100% of Fiore Company on January 1, 2013. Kaye paid $1,000 excess consideration over book value which is being amortized at $20 per year. Fiore reported net income of $400 in 2013 and paid dividends of $100.
Assume the initial value method is applied. How much will Kaye's income increase or decrease as a result of Fiore's operations?

• A) $400 increase.
• B) $300 increase.
• C) $380 increase.
• D) $100 increase.
• E) $210 increase.

Understand the difference between role strain and role conflict.

Grasp the concept of total institutions and their characteristics.

Comprehend major influences on the developing self, including the nature vs. nurture debate.

Identify the characteristics of bureaucracies as formal organizational models.

---

Definitions:

Cash Concentration

The process of consolidating cash from multiple accounts into a single account, aiming to improve the efficiency of cash management and reduce transaction costs.

Centralized Bank Account

A single bank account used by a company to manage and control all payments and receipts, simplifying cash management.

Adjustment Costs

Expenses incurred from making changes to a business, such as restructuring operations or relocating facilities.

Marketable Securities

Short-term financial instruments that can be quickly converted into cash at a reasonable price, like stocks and bonds.